Project Ara is still going strong, and Google demonstrated it at I/O at the ATAP presentation. Project Ara Technical Lead Paul Eremenko talks up the modular phone platform in the video below (starting at around 23:30), bringing the concept beyond simple phone component upgrades. "What if a phone could see in the dark? What if a phone could test if water is clean?" The collaborative Ara team wants the hardware to be just as flexible as the larger Android ecosystem.
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